Set up a Portfolio Lending facility to take advantage of our discounted fixed rates.
The Portfolio Lending product is issued by Bell Potter Capital Limited (ABN 54 085 797 735 AFSL No. 360457).
Making the decision to prepay interest
- A Bell Potter Portfolio Lending facility provides flexibility in managing your interest costs and cash flow.
- You can combine both a variable rate loan and one or more fixed rate loans in the same facility.
- Interest on fixed loans of up to 12 months is prepaid.
- Many investors choose to prepay interest during June, which provides certainty of your interest costs and the possibility of an accelerated tax deduction. Note: You should seek your own taxation advice when considering prepaying interest.
Interest payments methods
There are three ways to prepay your interest on your Portfolio Lending loan:
- Transfer funds to your Bell Potter Portfolio Lending facility.
2. Include the interest amount in your fixed rate loan.
3. Have the interest charged to your variable rate loan
What are the benefits of prepaying interest?
Bring forward interest expenses
By prepaying next year’s interest on your margin loan you may be able to claim a tax deduction on some or all of your prepaid interest in this financial year. Note: You should seek your own taxation advice when considering prepaying interest.
Protect yourself against any potential interest rate rises
Provide certainty over your interest rate costs for the coming financial year. Should interest rates rise, your costs do not.
Manage cashflow
By prepaying interest before June 30 2024, you won’t need to make any interest payments on your fixed loan until June 2025.
What are the risks of prepaying interest?
Choosing to fix all or part of your loan
- Interest rates may fall during the period; an opportunity cost.
- If you choose to repay a fixed loan early, your prepaid interest is not refundable.
Bell Potter offers you the ability to fix all or part of your loan – you nominate how much of your loan you would like to fix.
Why choose Bell Potter Portfolio Lending?
Competitive market offering
We offer competitive portfolio loan interest rates and there are no establishment, maintenance or account keeping fees.
Multiply your investment potential
Borrow between 40% and 75% on approximately 400 approved ASX listed securities and ETF’s, as well as a range of managed funds.
Access to well-known brands
Lending on over 150 approved International securities available: 70% LVR offered on approved major global companies.
Expertise & Support
Direct access to professional service and support from your designated account manager.